(Not Applicable)
(Not Applicable)
1. Technical Field
This invention relates generally to Internet electronic commerce and more particularly to a method of disseminating and redeeming coupons on-line for use with Internet shopping and computer shopping services.
2. Description of the Related Art
Coupons are commonly used to encourage potential customers to purchase products. Often, when a new product is introduced, paper coupons are created and distributed through direct mailings, newspapers and magazines in widespread campaigns attempting to reach those consumers potentially interested in purchasing that product. If a coupon is clipped and used by a consumer in a transaction, there is usually very little, if any data gathered to describe the buyer. This is a significant disadvantage since the process of gathering data reflecting the buying habits of consumers is useful to the marketing community to assist in better organizing product retailing efforts.
Paper coupon creation is usually initiated by a product manufacturer. An intermediate organization may be responsible for coupon printing and distribution to potential consumers of the targeted product. Typically, a consumer may clip a coupon from the newspaper and carry the coupon to a retail outlet. At the time of purchase, the coupon is presented to the cashier and the value of the coupon deducted from the product purchase price. After the purchase has been made, the retailer can submit the coupon to an intermediate organization that handles the redemption relationship on behalf of the manufacturer. The retailer is compensated for the coupon value and the manufacturer debited for the coupon amount. Thus, a one to one relationship exists between items purchased and physical inventory. This correspondence provides a method of verification or accountability indicating items were actually sold and coupons were not submitted by the retailer in a fraudulent manner.
With the growth of the World Wide Web, e-commerce and secure transactions, more consumers are purchasing items over the Internet. Currently, there exist certain web sites such as www.hotcoupons.com which deliver coupons selected from the user""s browser screen contents and output to their local printer. The coupon is presented at the time of purchase to the service provider honoring the coupon. This is nearly identical to the process involved with a coupon clipped from a periodical, with one key difference being the distribution medium. Moreover, coupon usefulness may be severely limited if coupons may only be offered and used in connection with a single transaction associated with the web site offering the products which are to be discounted. A more advantageous system would permit maximum flexibility with regard to when and where a coupon is presented to a user. Further, it would be advantageous to provide maximum flexibility and convenience to individuals redeeming such coupons by avoiding limitations on when and where within the World Wide Web such coupons may be redeemed.
Thus, there remains a need to provide a method and system for distribution and redemption of coupons on the World Wide Web that overcomes these and other deficiencies of the prior art.
A method and apparatus for electronic distribution and redemption of coupons on a computer network. According to the method, the invention comprises the steps of providing an electronic coupon in the form of a machine readable computer file; permitting a user of a client machine to receive the computer file via the computer network when the user accesses a selected coupon distribution web site; storing the computer file on the client machine; and authorizing a benefit when the computer file is received by a selected coupon redemption web site via the computer network. The computer file can contain one or more of the following: a coupon serial number, an expiration date, a graphic image, a benefit definition or a product information data set.
According to one aspect of the invention, a determination of the benefit to be accorded to a user is based upon a benefit definition which is included as part of the computer file. The benefit can consist of, for example, a discount relative to a purchase price, a credit applicable to the purchase price of a product, or a special offer.
The coupon distribution web site and the coupon redemption web site are advantageously separate one from the other. In this regard, the method further involves the steps of creating the computer file at a centralized computer facility, and transmitting the computer file to the distribution web site via the computer network. A record of the transaction is advantageously transmitted from the coupon redemption web site to the centralized computer facility. Using this record, and others like it, a database is maintained at the centralized computer facility. The database can be used for fraud prevention as it concerns coupon redemption or for statistical marketing analysis reasons. For example, the fraud prevention step can consist of reconciling the record of the coupon redemption with an inventory reduction, linking each coupon redemption to a specific sale of the product to a customer.
According to another aspect, the method involves the further steps of requesting certain predefined information from the user as a condition for the user receiving the computer file; encoding the information as part of the computer file; and compiling the information as part of a computer record to be stored as part of the database when the coupon is redeemed.
In still a further aspect according to the method of the invention, the coupon redemption record comprises at least one or more of the following: an associated transaction number, a supplier/manufacturer name, a date on which the computer file was transferred to a user, a date the file was received at the coupon redemption web site, a merchant identification number, identification of the product purchased, the user name, and the user""s e-mail address.
A system for implementing the foregoing method includes a programmable computer connectable to two or more web sites in a computer network in which users of client machines can access and receive computer data from the plurality of web sites. The system advantageously provides means for generating an electronic coupon responsive to a predetermined set of coupon criteria, the electronic coupon being comprised of a computer file. Further, means are provided for delivering the computer file to a predetermined coupon distribution web site on the computer network. The coupon distribution web site is configured to be responsive to at least one of the client machines to deliver the electronic coupon to the client machine for storage thereon. Finally, means are provided for receiving and storing a record from a coupon redemption web site to which the computer file has been transmitted by the client machine for receiving a benefit.
In a further aspect, the system may also include means for reconciling the record with a physical decrease in a seller""s inventory. Such a reconciliation permits verification that a product sale has occurred for each instance in which one of the electronic coupons has been received at the coupon redemption web site.